One year after its debut, the initial spark of excitement for Apple’s much-hyped digital payment system is far from a raging fire—but don’t count it out just yet.
The Apple Pay tap-and-pay app allows you to store credit cards and rewards cards numbers on your phone.
One of the benefits of using Apple Pay—aside from convenience—is that your card details are not shared with the retailer. In fact, they aren’t even stored on your device.
You don’t even have to open an app to use it. Simply use the contactless reader at an approved location, and Apple assigns a unique transaction number to each purchase you make.
Pretty simple. Sounds great, right?
Not great enough to wow consumers all that much right now.
Retailers are reporting that only 1 percent of all transactions are conducted via this mobile payment app. Bloomberg Business reports that more than 65 percent of iPhone 6 and 6 Plus users have failed to use it thus far.
Underwhelming response aside, Apple Pay should start seeing growth over the next few years.
Now available in the United States and United Kingdom, Apple will next introduce the app into Australia, China, Europe, and Canada.
As part of a slow, steady growth, Apple Pay will gradually expand its reach.
The system is currently available in 700,000 locations. By the end of 2015 the tap-to-pay function will increase from 40,000 Coca Cola machines to 100,000.
Currently, Apple Pay is accepted at the following locations, just to name a few…
- Panera Bread
It’s no secret that consumers worldwide are gravitating toward a paperless buying experience. Using plastic at the checkout may become a thing of the past much sooner than we anticipate.
In fact, it’s probable that one day in the future, the personal POS (Point of Sale) device will largely replace retailers’ POS devices.
Still, although Apple is responding to our culture’s demand for ease in transactions, our behavior hasn’t caught up with current technology.
It’s not that Apple Pay isn’t a great way to conduct cashless transactions, it’s just that it may take a while to change consumers’ habits.
What does this mean for Apple investors?
As the company continues its mobile payment rollout worldwide, Apple stock (NASDAQ: AAPL) will likely gain value.
The boon will occur as Apple encourages customers to upgrade their devices, which will introduce more consumers to the mobile payment app.
If you haven’t invested in Apple stock to date, you should definitely consider buying it.
With its improved earnings per share of 44.5% when compared to the same quarter last year, AAPL continues to hold ground as a valuable stock in investors’ portfolios.
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